Kentucky Higher Education Assistance Authority
February Money Tip
If you’re a college student, the most important thing to do with the money you earn is to pay yourself first by putting as much away as you can into savings. Some financial advisers recommend saving between 10 and 17 percent of your income.
The best way to save money is through direct deposit. The money goes to your savings account before you get a chance to spend it.
Once you’ve accumulated a considerable amount of savings, you might want to consider putting some of it into safe, short-term investments such as a certificate of deposit (CD). With the turmoil in the stock market over the past year, though, you should be cautious about sinking a lot of money into stocks. You should consult with a stockbroker from a reputable firm if you’re considering something like that.
Don’t think you make enough to save anything? Keep track of what you spend and you’ll almost certainly find places you can save a few dollars here and there. Do you really need to buy soft drinks from the soda machine or to make that 251st text message that will send you into overage on your bill?
When you cut your spending, you can sit back and watch your savings grow.
To learn how to plan and prepare for higher education, visit www.GoHigherKY.org. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, extension 7381. For information about low-cost student loans, visit www.studentloanpeople.com; write The Student Loan People, P.O. Box 24328, Louisville, KY 40224-0328; or call (888) 678-4625.